Bitcoin (BTC) climbed back above $61,000 on Thursday after Federal Reserve Chair Kevin Warsh signaled inflation risks were easing, pulling the token back from a 21-month low.
Key Points
- Bitcoin rebounded above $61,000 after Federal Reserve Chair Kevin Warsh said inflation risks had come down.
- Solana led major tokens higher with a roughly 4% daily gain, while Ether and XRP also advanced.
- Bulls need a close above $62,000 to open a path toward $64,000, with $60,000 serving as key support.
Bitcoin Rebounds On Warsh Remarks
Speaking Wednesday at the European Central Bank's annual forum in Sintra, Portugal, Warsh said inflation risks had come down over the past several weeks. He reaffirmed the Fed's commitment to bringing inflation back to its 2% target, but stopped short of hinting at the central bank's next policy move. Warsh added that officials would rely on incoming economic data before deciding their next step.
The remarks eased fears that the central bank would maintain an aggressive stance while broader growth signals weaken. Still, some traders said it would take more than one dovish comment to confirm a lasting shift in sentiment.
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Solana Leads Altcoin Rally
Solana (SOL) led major tokens higher, rising about 4% on the day to trade near $78 and extending its weekly gain to roughly 16%. Ether (ETH) added near 3% to trade around $1,630, while XRP (XRP) held steady close to $1.06. The advance marked one of the clearest signs yet that risk appetite was returning to digital assets after a bruising June.
The rally coincided with reports of progress in indirect talks between the United States and Iran, held in Doha and mediated by Qatar. Qatar's Foreign Ministry made positive comments on implementing a ceasefire memorandum, easing some of the geopolitical pressure weighing on markets.
Traders also pointed to a rotation out of semiconductor and artificial-intelligence stocks after a selloff pressured chipmakers across Asia. The shift raised the possibility that capital could flow back into Bitcoin and other risk assets in the near term. BNB (BNB), Dogecoin (DOGE) and Cardano (ADA) lagged behind their larger peers even as the broader market recovered.
BTC Eyes $62K Breakout
Bitcoin derivatives activity also picked up, with trading volume reportedly climbing more than 25% to $83.57 billion. Open interest rose 7% to $47.68 billion, while options volume jumped over 30% to $3.50 billion.
As of Thursday, BTC traded near $61,226 on the four-hour chart after buyers defended a rising trendline near $58,000. The MACD reading turned positive, though the first resistance for bulls sits at $62,000. A clean close above that level could open a path toward $63,000 and $64,000, with $60,000 now standing as the key level for bulls to defend.
Bitcoin's recent swings cap a volatile stretch that saw the token close June down about 20% and touch a 21-month low near $57,950 this week. The token had traded above $71,000 as recently as early June, before a wave of spot ETF outflows and hawkish Fed rhetoric drove a sustained decline.
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